Category: Business

Vietnam Company Setup & Investment Law 2025: Market Entry & Compliance Insights

Vietnam Company Setup & Investment Law 2025: Market Entry & Compliance Insights

khushbuthakkar

Featuring legal insights from ADK Vietnam Lawyers with practical considerations by BoardRoom.

Vietnam’s Law on Investment 2025: Market Entry, Compliance and Business Setup in Vietnam

Vietnam is entering a period of dynamic growth, with inbound capital investment continuing to play a critical role in its economic trajectory. As global investment flows evolve and regional competition intensifies, the country is refining its legal framework to strengthen its position as a preferred destination for company setup and business expansion.

On 11 December 2025, the National Assembly adopted the Law on Investment 2025 (“LOI 2025”), which came into effect on 1 March 2026, replacing the Law on Investment 2020 (“LOI 2020”). The reform signals a clear transition – from attracting foreign direct investment (“FDI”) at scale to prioritising high-quality, sustainable investment activities that contribute to long-term economic value.

 

Note: This article is based on insights from ADK Vietnam Lawyers and is provided for general informational purposes only. It does not constitute legal advice. BoardRoom supports businesses with company incorporation in Vietnam, regulatory compliance and operational execution.

Why the LOI 2025 Matters for Businesses Expanding into Vietnam

Under the previous framework, investors frequently encountered structural challenges during market entry in Vietnam. Overlapping administrative requirements, extensive pre-approval processes and prolonged timelines created inefficiencies that could delay projects and disrupt go-to-market strategies. At the same time, limited flexibility during implementation made it more difficult for organisations to adapt once operations had commenced.

The LOI 2025 addresses these pain points by streamlining administrative processes and improving regulatory transparency. However, the significance of the reform extends beyond procedural efficiency.

As Brian Nguyen, BoardRoom Vietnam’s Country Manager, explains:

“Vietnam is making the entry process more efficient, but complexity hasn’t disappeared – it has evolved. Elements that were previously addressed upfront may now need to be managed during implementation and operations.”

This evolution signals a shift in how businesses should approach setting up a business in Vietnam – not as a one-off milestone, but as part of a broader and ongoing compliance journey.

Market Entry in Vietnam: What Has Changed Under LOI 2025

1. Permitting the Establishment of an Economic Organisation Prior to Obtaining an Investment Project

Investors can now establish a company in Vietnam before completing certain investment registration procedures, including the Investment Registration Certificate (“IRC”).

This differs from the previous model, where approval was required prior to incorporation. The new approach enables businesses to:

  • Establish an on-the-ground presence earlier
  • Initiate hiring and operational planning
  • Respond more quickly to market opportunities

However, faster setup does not eliminate regulatory obligations.

“Speed gives you entry, but not certainty,” Brian points out. “You can set up faster, but if licensing, capital contribution and compliance aren’t properly aligned, that early advantage can create downstream issues.”

The IRC remains mandatory and capital contribution timelines continue to apply. Without effective coordination across legal, financial and operational functions, gaps may emerge leading to compliance exposure or implementation delays.

2. Narrowing the Scope of Investment Policy Approval

The LOI 2025 refines the scope of investment policy approval to focus on large-scale, sensitive, land-related, or high environmental impact projects.

This reduces the number of projects subject to lengthy pre-approval processes, enabling faster execution.

3. Expansion of Projects Eligible for Special Investment Procedures – The “Green Channel” Mechanism

The “green channel” mechanism introduced under LOI 2020 exempts eligible projects from investment policy approval, environmental assessments and construction permits, requiring only a written compliance undertaking.

Previously limited to selected technology projects, the LOI 2025 extends this to all sectors within designated zones.

This significantly accelerates project timelines and reduces administrative burden.

4. Changes to Conditional Business Lines and Sectors

The LOI 2025 authorises the Government to define and regulate investment and business conditions for selected sectors through two clear categories:

  1. Sectors that still require licences or approvals before operations can begin;
  2. Sectors that will move to a disclosure-based approach, where businesses only need to meet stated requirements and will be subject to post-licensing supervision.

Currently, most conditional sectors under the LOI 2020 operate under a pre-approval regime. However, some do not require such upfront control and can be effectively managed through post-approval oversight.

This shift enables a more risk-based regulatory approach, freeing low-risk sectors while maintaining oversight where it matters most.

5. The “One-Stop” Mechanism, Electronic Procedures, and Their Impact on Foreign Investors

The LOI 2025 strengthens the “one-stop” mechanism by integrating project registration, amendments and reporting into a single digital system – the National Investment Information System, reducing paperwork and fragmented approvals.

As entry becomes simpler, post-approval supervision increases, requiring businesses to prioritise ongoing compliance. Early-stage risks, such as inconsistent local implementation and delays in guidance, should be closely monitored.

“The changes don’t necessarily mean less regulation, it means accountability begins earlier,” Brian emphasises.

“While entry becomes more straightforward, maintaining compliance is more closely integrated into day-to-day operations.”

In essence, the reform moves complexity from entry to execution.

Executing Successfully: Aligning Market Entry with Compliance

The LOI 2025 marks a shift from approval-driven entry to execution-driven success.

“The companies that succeed aren’t the fastest to enter, but the most disciplined in how they operate,” Brian concludes.

For businesses, this means shifting focus from simply entering the market to building the capabilities required to operate, stay compliant and scale effectively in Vietnam.

How BoardRoom Supports Company Setup and Compliance in Vietnam

Through our partnership with ADK Vietnam Lawyers, BoardRoom supports organisations in translating regulatory requirements into practical and sustainable business operations.

From company incorporation in Vietnam through to ongoing compliance and financial reporting, we help establish the foundations required for long-term success, ensuring alignment between legal obligations and day-to-day execution.

Contact us for guidance on company incorporation, compliance and operational setup.

Contact BoardRoom for more information:

Brian Nguyen_grey bg

Brian Nguyen

Country Manager,
BoardRoom Vietnam

E: [email protected]

Source & Attribution

This article is adapted from insights by ADK Vietnam Lawyers: Foreign Investment In Vietnam Under Law Of Investment 2025: Towards Simplification Of Investment Procedures?

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Navigating Vietnam’s Corporate Compliance Landscape

Navigating Vietnam’s Corporate Compliance Landscape

khushbuthakkar

Navigating Vietnam’s Corporate Compliance Landscape: A Practical Guide for Foreign Businesses

Vietnam has emerged as one of Southeast Asia’s fastest-growing economies, attracting sustained foreign investment across manufacturing, technology, logistics, and professional services. As multinational companies expand their footprint in Vietnam, compliance has become a defining factor of long-term operational success rather than a box-ticking exercise.

In recent years, Vietnam’s regulatory and corporate compliance environment has evolved significantly. Reforms to company registration, foreign ownership rules, licensing frameworks, and tax administration have improved transparency and market accessibility for foreign businesses. At the same time, frequent regulatory updates make compliance obligations increasingly dynamic and require proactive management.

In this context, compliance is no longer just about meeting statutory requirements. Strong governance and regulatory alignment directly support operational efficiency, risk mitigation, and investor confidence—particularly for businesses entering high-growth sectors such as manufacturing, technology, logistics, and professional services.

This article provides a practical guide to Vietnam’s corporate compliance landscape, drawing on ground-level insights from Brian Nguyen, Country Manager of BoardRoom Vietnam, to help foreign businesses navigate governance, licensing, tax, labour, and intellectual property obligations with confidence.

Corporate Governance and Licensing Obligations

Vietnam’s Law on Enterprises establishes the governance framework for companies operating in the country, including the roles and responsibilities of shareholders and legal representatives.

Foreign-invested companies must appoint at least one resident legal representative in Vietnam, who holds the authority to sign contracts, represent the company before authorities, and ensure statutory compliance.

Brian shares, “The legal representative is a critical role in Vietnam. This person holds the company seal and has authority over contracts, tax filings, and labour matters, so investors must carefully manage and define this role through the company charter.”

Vietnamese LLC companies typically operate under either a members’ council or a chairman structure, depending on shareholder arrangements. Governance obligations are formalized through the company charter, which serves as the business’s constitution and can be used to limit or define decision-making authority.

From a licensing perspective, foreign investors must maintain valid Investment Registration Certificates (IRC) and Enterprise Registration Certificates (ERC). Any changes to shareholding, business activities, capital structure, or legal representatives will require amendment or re-issuance requirements.

Brian highlights this as a common compliance risk: “Many compliance issues arise not from initial setup, but from changes made later without updating the IRC or ERC. Even small amendments can trigger regulatory obligations.”

Sector-specific licences also apply to conditional industries such as education, retail, logistics, and certain technology services. Failure to obtain or renew these licences can result in fines, reputational damage, and business interruption—underscoring the importance of structured incorporation compliance and ongoing governance oversight.

Financial Reporting, Accounting, and Tax Compliance

Financial compliance in Vietnam requires careful coordination across accounting, tax, and audit functions. All foreign-invested companies must prepare financial statements in accordance with Vietnam Accounting Standards (VAS), with gradual alignment toward IFRS principles.

Annual statutory audits are mandatory for foreign-owned entities, regardless of company size. Brian explains, “One key difference for foreign-invested companies is that appointing an auditor is compulsory. This is not optional and forms a core part of annual compliance.”

Beyond annual audits, companies must manage recurring filings, including:

  • Monthly or quarterly Value-Added Tax (VAT) returns
  • Quarterly provisional Corporate Income Tax (CIT) filings
  • Annual CIT finalization
  • Withholding tax obligations
  • Personal Income Tax (PIT) filings for employees

Vietnam’s standard CIT rate is 20%, with VAT typically applied at 10%. Incentives may apply to manufacturing, R&D, or businesses operating within industrial parks or special economic zones.

However, compliance failures often stem from missed deadlines rather than complex calculations. As Brian notes, “Vietnam has a fixed compliance calendar, but companies still miss deadlines if they don’t have proper systems or advisors in place.”

Engaging experienced global accounting services providers and tax advisors helps ensure accurate reporting, timely submissions, and alignment with Vietnam’s evolving tax framework.

Labour, Employment, and HR Compliance

Vietnam’s Labour Code governs all employment relationships and applies equally to local and foreign-invested companies. Employers must implement compliant HR practices covering employment contracts, probation periods, working hours, leave entitlements, and termination procedures.

Mandatory social, health, and unemployment insurance contributions apply to Vietnamese employees and, increasingly, to foreign employees as well. Brian highlights this as a frequent compliance gap: “One common issue we see is companies overlooking social insurance contributions for foreign employees, which can trigger penalties for late payment or under-reporting.”

Foreign employees must also hold valid work permits, typically issued for up to two years and renewable. Temporary Residence Cards (TRCs) allow foreign staff to remain in Vietnam for the duration of their work permits.

Vietnam does not impose formal quotas on foreign hires, but documentation must be complete and accurate. Structured payroll services play a critical role in managing tax withholding, insurance contributions, and monthly reporting obligations, thereby reducing HR compliance risk.

Intellectual Property and Industry-Specific Compliance

Vietnam’s rapid economic growth has intensified competition, making intellectual property protection a critical compliance priority for foreign businesses.

Vietnam operates under a “first-to-file” system, meaning trademark and IP rights are granted to the first registrant rather than the first user. Brian advises, “In Vietnam, IP protection is based on a first-to-file system. Companies should register trademarks and IP as early as possible to avoid disputes.”

Beyond IP, industry-specific compliance obligations vary widely. Manufacturing and F&B companies must comply with environmental, safety, and operational standards, while logistics and technology firms may face additional licensing or reporting requirements.

Sector-specific regulations are frequently updated through decrees and circulars, making it essential for businesses to monitor regulatory changes closely or engage specialised corporate advisory services to ensure alignment.

Best Practices for Maintaining Ongoing Compliance

Sustained compliance in Vietnam requires more than reactive filings—it demands proactive systems, internal controls, and expert support.

Best practices include:

  • Maintaining a centralized compliance checklist and calendar
  • Implementing internal controls and audit trails
  • Monitoring licence validity and renewal timelines
  • Using digital tools to track statutory deadlines

Vietnam does not yet operate a fully centralized compliance portal, meaning filings often require coordination across multiple authorities.

Brian explains, “Unlike some markets, Vietnam does not have one single platform for all filings. This is why service providers play an important role in managing compliance efficiently.”

Partnering with professional providers offering corporate compliance services, business registration services, and integrated accounting and payroll solutions significantly reduces administrative burden and regulatory risk—allowing management teams to focus on growth.

Ensuring Long-Term Success in Vietnam with Expert Support

Vietnam’s compliance and regulatory landscape will continue to evolve alongside its economic growth, digitalization agenda, and deeper integration into global trade networks. For foreign businesses, the challenge lies not in navigating complexity once, but in maintaining alignment as regulations change.

Brian offers a clear perspective, “For companies planning long-term operations in Vietnam, compliance should be seen as a strategic function, not an administrative task. Strong governance, local expertise, and the right partners make all the difference.”

BoardRoom supports businesses at every stage of their Vietnam journey. With deep expertise across company incorporation, corporate compliance services, global accounting services, payroll services, tax advisors, and corporate advisory services, BoardRoom enables foreign companies to operate in Vietnam with confidence, clarity, and control.

Looking ahead over the next three to five years, Vietnam’s regulatory environment is expected to become more digitalized, transparent, and aligned with international standards. Businesses that invest early in robust compliance frameworks and partner with experienced regional advisors will be best positioned to scale sustainably in one of Southeast Asia’s most promising markets.

Contact BoardRoom for more information:

Brian Nguyen

Country Manager,
BoardRoom Vietnam

E: [email protected]

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Business Expansion Guide for Vietnam

Business Expansion Guide for Vietnam

khushbuthakkar

Business Expansion in Vietnam: A Practical Guide for Investors Entering Southeast Asia’s High-Growth Market

Vietnam has rapidly emerged as one of Asia’s most compelling destinations for business expansion, driven by sustained economic growth, accelerating industrialization, and deepening integration into global trade networks. As highlighted by recent economic analyses, national development initiatives continue to strengthen logistics infrastructure, manufacturing ecosystems, and urban connectivity—reinforcing Vietnam’s long-term attractiveness to foreign enterprises.

Today, expanding into Vietnam is no longer purely about cost efficiency. It represents entry into a maturing, innovation-led economy supported by a young, skilled workforce, rising domestic consumption, and improving regulatory clarity. Vietnam’s regulatory environment has undergone notable reform in recent years, including streamlined company incorporation processes, digitalized licensing applications, more explicit foreign ownership rules, and more transparent investment approval pathways.

These developments position Vietnam as a strategic alternative for companies diversifying supply chains to APAC region. Supported by extensive Comprehensive Partnership Agreements and free trade agreements (FTAs), resilient manufacturing capabilities, and growing investor confidence, Vietnam offers both scalability and long-term strategic value.

This guide outlines why Vietnam remains a compelling expansion market and how businesses can navigate market entry, regulatory requirements, tax obligations, and ongoing compliance with confidence.

Key Steps in Expanding Your Business into Vietnam

Step 1: Choosing the Right Business Structure

Selecting the appropriate legal structure is one of the most critical early decisions when entering Vietnam. The right setup depends on your commercial objectives, revenue plans, and operational footprint.

Common entry structures include:

  • Limited Liability Company (LLC)
  • Joint-Stock Company (JSC)
  • Branch Office
  • Representative Office (RO)

For most foreign investors, the LLC remains the preferred option due to its flexibility and ownership structure.

Brian Nguyen, Country Manager of BoardRoom Vietnam, explains, “For foreign investors, the most common structure in Vietnam is the limited liability company. It allows 100% foreign ownership for most business activities, making it both flexible and practical for market entry.”

Representative Offices are typically used for market research and liaison activities but are not permitted to generate revenue. Branch Offices, meanwhile, are subject to tighter regulatory controls and are less commonly used by foreign companies.

Understanding sector-specific restrictions is also critical. While Vietnam is generally open to full foreign ownership, certain conditional sectors such as logistics or transportation, may require local participation. This is where corporate advisory services play a crucial role in aligning structure with regulatory requirements.

Step 2: Obtaining Necessary Licences and Registration

Foreign companies must complete formal business registration before commencing operations in Vietnam.

This typically involves securing:

  • Investment Registration Certificate (IRC)
  • Enterprise Registration Certificate (ERC)
  • Business licences (for conditional sectors)

Unlike local companies, foreign-invested entities must apply for both the IRC and ERC.

Brian highlights this as a common challenge: “Foreign investors in Vietnam are required to apply for two licences: the Investment Registration Certificate and the Enterprise Registration Certificate. The IRC is often the more challenging step, especially due to document legalization requirements from the investor’s home country and the conditional business sectors that are applicable to foreign investors.”

The legalization process can involve notarization, foreign affairs certification, and embassy endorsement, often extending timelines if not properly managed. Leveraging experienced company incorporation services can significantly reduce delays and administrative friction.

Step 3: Tax Registration and Compliance

Tax compliance is a cornerstone of sustainable operations in Vietnam. Foreign-invested companies must register with local tax authorities and comply with multiple tax regimes, including:

  • Corporate Income Tax (CIT): Standard rate of 20%
  • Value-Added Tax (VAT): Generally, at 10%
  • Personal Income Tax (PIT): Applicable to both local and foreign employees

Brian notes that while Vietnam’s tax framework is structured, incentives are activity- and location-based: “Tax incentives in Vietnam depend largely on the nature of the business and the locations encouraged by the government to attract investment. Manufacturing, R&D, and operations located within industrial parks often enjoy preferential tax treatment, while standard service businesses are subject to the normal 20% corporate income tax.”

Engaging experienced tax advisors and global accounting service providers helps businesses optimize tax positioning while remaining compliant with evolving regulations.

Step 4: Labour Law Compliance

Vietnam’s Labour Code governs employment relationships and applies to both local and foreign employees.

Key considerations include:

  • Employment contracts (mandatory)
  • Social insurance contributions
  • Work permits for foreign employees

Vietnam does not impose formal quotas on foreign hires, but documentation and compliance remain critical. Brian explains, “Vietnam does not restrict the number of foreign employees a company can hire, but all foreigners must have valid work permits, and social insurance obligations must be properly calculated and reported.”

Failure to comply can result in penalties, inspections, or operational disruptions. Robust payroll services ensure accurate withholding, reporting, and timely filings for both local and expatriate staff.

Step 5: Protecting Your Intellectual Property (IP)

Vietnam’s fast-growing consumer and industrial markets attract innovation but also competition. Protecting intellectual property early is essential.

Key IP protections include:

  • Trademarks
  • Patents
  • Copyrights

Vietnam operates under a “first-to-file” system, making early registration critical. Brian advises, “Vietnam follows a first-to-file system. Whoever registers the trademark first is protected by law, so investors should register their IP as soon as they enter the market.”

Delays in IP registration can expose businesses to brand dilution, disputes, or costly legal challenges.

Step 6: Ongoing Compliance and Reporting Obligations

Maintaining good corporate standing requires consistent adherence to Vietnam’s reporting and compliance framework. Key obligations include:

Annual Financial Audit and Reporting

All foreign-invested companies must submit audited financial statements annually in accordance with Vietnam Accounting Standards (VAS). Reports must be filed within 90 days of the fiscal year-end—typically by 31 March.

Brian emphasizes the importance of this requirement, “One of the major differences for foreign-invested companies in Vietnam is that appointing an auditor is mandatory. This is a critical compliance requirement that cannot be overlooked.”

Ongoing Filings Companies must also manage:

  • Monthly or quarterly VAT filings
  • Quarterly and annual CIT filings
  • Monthly/quarterly PIT filings
  • Labour and social insurance reports
  • Investment activity reports

Failure to comply can lead to fines ranging from hundreds to thousands of US dollars. Comprehensive corporate compliance services and strong incorporation compliance frameworks help businesses avoid costly oversights.

Navigating Vietnam’s Regulatory Landscape

Vietnam’s regulatory environment is dynamic, with frequent updates to tax, labour, and investment laws. While reforms are designed to improve transparency and alignment with international standards, staying current is essential.

Brian notes, “Vietnam’s regulations evolve quickly. While changes are made to support investors, businesses need to stay informed or risk missing key compliance deadlines.”

Working with experienced corporate advisory services providers allows companies to anticipate regulatory changes, manage sector-specific requirements, and maintain long-term compliance.

Looking Ahead: Vietnam’s Business Environment Over the Next 3–5 Years

Several structural trends will shape Vietnam’s next phase of growth:

  • Digital transformation, including e-invoicing and cashless payments
  • Workforce evolution, driven by government investment in skills and technology education
  • Regulatory reforms aligned with international standards
  • A strong push toward sustainability and renewable energy

Brian observes, “Digital transformation, workforce upskilling, and green economy initiatives will significantly shape Vietnam’s business landscape over the next three to five years.”

These trends further enhance Vietnam’s appeal as a future-ready investment destination.

Navigating Vietnam’s Growth Path with Confidence — How BoardRoom Supports Your Expansion

Vietnam’s rise as a high-growth investment destination is underpinned by economic reform, digitalization, and global supply-chain realignment. However, success in Vietnam requires more than opportunity—it demands informed planning, regulatory fluency, and disciplined execution.

This is where BoardRoom adds value. With deep regional expertise across company incorporation, business registration services, global accounting services, payroll services, tax advisors, and corporate compliance services, BoardRoom supports businesses throughout their Vietnam expansion journey.

From initial setup to ongoing compliance, BoardRoom enables companies to operate with clarity, speed, and confidence—allowing leaders to focus on growth while ensuring strong governance and long-term sustainability.

As Vietnam continues its ascent as Southeast Asia’s strategic investment hub, businesses that enter with the right structure, support, and foresight will be best positioned to succeed.

Contact BoardRoom for more information:

Brian Nguyen

Country Manager,
BoardRoom Vietnam

E: [email protected]

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Advantages Of Setting Up Your Business in Vietnam

Advantages Of Setting Up Your Business in Vietnam

khushbuthakkar

Advantages of Setting Up Your Business in Vietnam: Unlocking Growth in Southeast Asia’s Fast-Rising Economy

As Vietnam continues to emerge as one of Asia’s fastest-growing economies, global investors are increasingly viewing it as a strategic hub for manufacturing, technology, and services. Over the past decade, the country has moved beyond its reputation as a low-cost production base to become a resilient market offering long-term growth, regulatory maturity, and strong regional connectivity.

This momentum is reinforced by the Vietnamese government’s national development plan, valued at approximately USD 48.7 billion. In 2025, around 250 major infrastructure, transport, industrial, and urban projects were launched to support the country’s next phase of economic development. These initiatives aim to maintain an 8% GDP growth target while laying the foundations for continued expansion. The long-term objective is to transform Vietnam into a high-income economy by 2045.

In this evolving landscape, setting up a business in Vietnam is no longer just about cost efficiency; it is also about strategic positioning. It is about accessing a dynamic economy supported by strong trade networks, pro-investment policies, and a rapidly modernising workforce. For businesses planning regional expansion, Vietnam offers both scale and stability.

Vietnam’s regulatory environment has also matured significantly. Through reforms under the Law on Enterprises and the Law on Investment, the government has streamlined company incorporation, enhanced foreign ownership allowances, and introduced digital processes that simplify market entry. Recent regulatory changes have created a more transparent and predictable environment, allowing businesses to focus on growth while meeting local incorporation compliance requirements.

Brian Nguyen, Country Manager of BoardRoom Vietnam explains, “Vietnam is no longer just a low-cost destination. It has become a growth engine for companies looking for long-term stability, skilled talent, and access to global markets.”

Why Vietnam Is an Attractive Market for Foreign Investors

Vietnam’s appeal is grounded in strong economic fundamentals. The country has consistently recorded annual GDP growth of around 6%–7%, supported by political stability, export-led industries, and robust foreign direct investment inflows. These fundamentals provide investors with confidence when making long-term commitments.

A major advantage is Vietnam’s young, skilled, and cost-effective workforce. With increasing levels of education and digital capability, local talent supports a wide range of industries, from manufacturing and logistics to technology and shared services.

Brian notes, “Vietnam’s workforce has evolved rapidly. Many investors are surprised by how well local talent can support higher-value operations and regional roles.”

From a logistical perspective, Vietnam’s location at the heart of Southeast Asia offers proximity to China, access to major shipping routes, and strong connectivity across ASEAN markets. This makes it an attractive base for companies seeking to diversify supply chains while maintaining operational efficiency. Compared with China, Vietnam continues to offer competitive labour costs and an improving ease of manufacturing. These factors translate into long-term operational savings, scalability, and sustainable growth for foreign investors.

Vietnam’s Evolving Investment and Regulatory Environment

The Vietnamese government has taken deliberate steps to improve the business climate, with a strong emphasis on digitalisation, simplified licensing, and clearer investment procedures. These changes have reduced administrative complexity and improved predictability for foreign companies entering the market.

Revisions to the Law on Investment and Law on Enterprises have expanded foreign ownership options and lowered barriers to entry in many sectors. Digital business registration has also streamlined the company incorporation process, allowing investors to establish legal entities more efficiently while maintaining compliance.

According to Brian, “The regulatory environment has become far more structured and transparent. While local knowledge is still essential, businesses today can navigate entry with greater clarity and confidence.”

Vietnam’s participation in major Free Trade Agreements (FTA), including the EU-Vietnam Free Trade Agreement (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP), further strengthens its position. These agreements reduce tariffs, enhance market access, and position Vietnam as a strategic export hub for businesses serving Asia, Europe, and global markets.

As international confidence grows, understanding Vietnam’s legal landscape remains critical. Ongoing corporate compliance services, including statutory filings, reporting obligations, and regulatory updates, play a key role in ensuring smooth operations and long-term success.

Key Advantages of Setting Up a Business in Vietnam

Vietnam continues to offer a highly competitive cost environment, making it an attractive destination for both new market entrants and established multinational companies. Labour costs remain significantly lower than in many regional peers, while productivity and technical capability continue to improve. This balance allows businesses to manage operating expenses effectively without compromising on quality or scalability.

In addition to labour, businesses benefit from attractive industrial, office, and commercial rental rates, particularly outside major city centres. Manufacturing and operating costs across key industrial zones remain favourable, supporting industries ranging from traditional manufacturing to electronics, renewable energy, and high-tech production. For companies seeking to optimise margins while building long-term regional operations, Vietnam offers a cost structure that supports sustainable growth.

Beyond cost efficiency, the Vietnamese government actively encourages foreign investment through a range of targeted incentives. These include corporate income tax reductions, tax holidays for priority industries, incentives linked to employment creation, and dedicated funding for research and development activities. Specific sectors and geographic zones also qualify for preferential treatment designed to support national development goals.

However, accessing these incentives effectively requires careful planning. Investment structures, business activities, and operational footprints must align closely with local regulations and incentive criteria. This makes professional tax service support essential, particularly for foreign investors unfamiliar with Vietnam’s regulatory and tax frameworks. 

Brian​ explains, “Vietnam offers meaningful incentives, but companies need to align their investment structure and operations with local regulations to maximise the benefits available.”

Another key advantage lies in Vietnam’s workforce. The country’s young, increasingly tech-savvy population is well suited to sectors such as digital services, technology development, advanced manufacturing, and business process outsourcing. Rising levels of digital literacy and technical training have enabled companies to establish not only production facilities, but also regional hubs for engineering, IT, and shared services.

For multinational companies operating across multiple markets, Vietnam has also become an attractive base for regional teams supported by global payroll services and scalable workforce solutions. This enables businesses to manage growing headcounts efficiently while ensuring consistency, accuracy, and compliance across borders.

As operations expand, the importance of robust back-office infrastructure becomes increasingly apparent. Access to reliable accounting services, payroll processing, and ongoing compliance support is critical for managing growth, maintaining financial transparency, and meeting statutory obligations. Without the right support in place, administrative complexity can quickly become a barrier to expansion.

At the same time, Vietnam’s appeal extends beyond export-driven activities. The country’s domestic market is growing rapidly, driven by rising incomes, urbanisation, and an expanding middle class. Demand is increasing across consumer goods, financial services, healthcare, education, and digital platforms, creating new opportunities for businesses with a local presence.

For many companies, this combination of cost efficiency, skilled talent, government support, and consumer market growth makes Vietnam not just a manufacturing base, but a strategic market in its own right—capable of supporting both regional operations and long-term commercial expansion. 

Looking Ahead: Vietnam’s Business Opportunities and How BoardRoom Can Help

Vietnam’s role as a strategic hub in Southeast Asia is expected to strengthen further over the next three to five years. Continued economic growth, regulatory reform, and deeper regional trade integration will create sustained opportunities for foreign investors.

As companies plan their market entry, partnering with experienced providers of corporate compliance services, company incorporation, and ongoing governance support becomes essential. Navigating local regulations, managing statutory obligations, and ensuring operational readiness all require in-depth local expertise.

Brian emphasises, “Companies that succeed in Vietnam are those that invest time upfront to get their setup right—from incorporation and compliance to accounting, tax, and payroll.”

BoardRoom supports businesses across every stage of their Vietnam expansion. With deep expertise in company incorporation, incorporation compliance, accounting services, tax services, global payroll services, and corporate governance across Asia, BoardRoom enables companies to establish and grow confidently in Vietnam’s fast-evolving business environment.

​​Looking ahead, Brian adds, “Over the next few years, Vietnam will continue to benefit from supply-chain shifts, digital transformation, and foreign-investment liberalisation. Businesses that enter with the right strategy and trusted partners will be well-positioned for sustainable growth.” 

With its strong fundamentals and forward-looking reforms, Vietnam offers more than an immediate opportunity—it provides a platform for long-term success. With the right approach and expert support, businesses can harness Vietnam’s growth momentum to achieve a lasting competitive advantage.

Contact BoardRoom for more information:

Brian Nguyen

Country Manager,
BoardRoom Vietnam

E: [email protected]

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